Thanks for posting. What is your take on the possibility of more mainstream institutional investors adding Bitcoin to their portfolios? What do you see as the biggest impediments to mainstream investment currently? What has drawn your group to Bitcoin and/or digital currency as a focus? Your best guess on the price of Bitcoin at the end of 2018, 2020, 2025?
Thanks for your questions.
Q1. What is your take on the possibility of more mainstream institutional investors adding Bitcoin to their portfolios?
Institutional investments in BTC is already underway and as BTC presence gets more known to the public, I am sure more companies would soon jump on the bandwagon and consider BTC as a mode of investment.
Institutional investments in BTC would further increase should the Winklevoss Bitcoin Trust be approved by the Securities and Exchange Commission (SEC). This is owing to the fact that institutional investors are often restricted to investing in only registered investment securities and should the ETF be approved by the SEC, that would unlock doors for these institutional investors to invest in BTC.
Q2. What do you see as the biggest impediments to mainstream investment currently?
I'd say that the biggest impediments to mainstream investment in BTC, would be the fear of security/uncertainty and the lack of knowledge.
The lack of knowledge in BTC may be highly attributed to the complex nature of the instrument itself. There are only possibly a small percentage of people who would claim that they fully understand everything there is to BTC.
This would lead to the second point, the fear of uncertainty/security. As mentioned that people who people who fully comprehend BTC are only a handful, the rest would have a certain level of uncertainty with regards to BTC.
I am sure that BTC enthusiasts or anyone that has some knowledge of related BTC news could also relate to more recent happenings such as the $460m worth of BTC stolen from Mt.Gox in 2014 and $70m worth of BTC stolen from BitFinex in 2016. News like these would damper investors confidence in BTC.
Q3. What has drawn your group to Bitcoin and/or digital currency as a focus?
I would say that the one thing that has drawn us to digital asset trading would be the absolute returns of it.
The return over the past years were phenomenal in comparison to other commodities/currency, whether it is gold, the Dow Jones Index or any other currencies. Besides, we feel that there is still a lot of room for future growth of digital currencies.
Q4. Your best guess on price of Bitcoin at the end of 2018, 2020, 2025?
Well, the price on Bitcoin at the end of 2018 would be anyone's guess. But if I have to put a number to it, I would have to put the ballpark figure at $2k+ USD. 2020 and 2025 seems fairly distant and perhaps I'll give you an answer to that after 2018
Ultimately, these would depend on BTC related news, especially the major ones that can be turning points for BTC. This could include future hacks (hopefully not) or news such as the approval/rejection of the Winklevoss BTC ETF.